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"You probably don't want a position over the weekend given that we could have another gap (in pricing) on the Sunday open."
- Citibank (based on Reuters)
Pair's Outlook
With yesterday's spike extending to 1.6276, GBP/USD has finally closed the gap, meaning there are no more reasons for the Pound to advance. The resistance at 1.63 should act as a ceiling and will thus force the bulls to give up the latest gains from 1.61. Once the monthly S3 is breached, the next support to be tested will be at 1.5850—2013 Q4 low. But if the bulls do not surrender now, there will be a substantial risk of a rally up to 1.67.
Traders' Sentiment
The traders' sentiment towards GBP/USD stays bullish, with 64% of all open positions being long. Concerning the orders set 100 pips from the spot price, 41% are to purchase and 59% are to sell the Sterling against the Dollar.
© Dukascopy Bank SA